6min chapter

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#174 Akhil Patel - This valuable signal could infer the market direction for years

State of the Markets

CHAPTER

The Spiral of the Metro Bank Share Price

There was a run on Metro Bank in West London because people were afraid the bank would collapse. The share price had been going down for quite some time, and then there was negative press from venture capital advisors. I think what this is going to do is in fact loosen bank regulations paradoxically - they'll probably succeed in getting some of these regulations loosens. And so it will be the consequence of all this that banks could potentially increase their risk by taking more risks with depositors' money. It's ultimately linked to real estate when it becomes wide-spread like we've seen here.

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